November 10, 2023

Why You May Not Qualify for Chapter 7 Bankruptcy

Filing for Chapter 7 Bankruptcy might seem like a direct route to wiping out unmanageable debts, but not everyone qualifies for this financial “fresh start.” The legal requirements can be stringent, and many individuals find themselves looking for alternatives. At McCarthy Law PLC, we provide a solution for those who need a different path out of debt, one that can be both effective and less detrimental to your financial future. Learn more about our services by visiting our website at or call us to schedule an appointment with one of our knowledgeable debt paralegals at 855-976-5777.

Understanding Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is a legal process designed to help individuals discharge many types of debt. It involves liquidating non-exempt assets to pay off creditors. While it can provide relief, not everyone meets the necessary criteria. To qualify, filers must pass a “Means Test” to demonstrate that their income is insufficient to pay off debt.

Common Reasons for Not Qualifying for Chapter 7 Bankruptcy

  1. Income Above Thresholds: If your income is higher than the median for your state and family size, you may not pass the Means Test.
  2. Recent Bankruptcy Discharge: Those with a bankruptcy case dismissed in the last 180 days may face a qualification barrier.
  3. Non-exempt Assets: Owning significant non-exempt property can disqualify you from Chapter 7, necessitating an alternative.
  4. Consumer Debts and Presumption of Abuse: High amounts of consumer debt can trigger a presumption of abuse, barring qualification.

The Consequences of Not Qualifying for Chapter 7 Bankruptcy

If you don’t qualify for Chapter 7, you might consider Chapter 13 Bankruptcy, which restructures rather than eliminates debt. However, this option can be costly and time-consuming, with significant implications for your credit score.

McCarthy Law PLC: Your Ally in Debt Resolution

At McCarthy Law PLC, we negotiate with creditors to lower the amount you owe. Our approach can offer numerous advantages over bankruptcy, including potential savings, credit score preservation, and avoiding the public nature of bankruptcy proceedings. Visit for more insight, or call us directly at 855-976-5777 to see how we can assist you.

The McCarthy Law PLC Process

We begin with a comprehensive evaluation of your financial situation and then devise a strategic plan to tackle your debt. Our clients often find that our tailored debt settlement services not only reduce what they owe but also pave the way to financial recovery without the stigma or enduring consequences of bankruptcy.

Why Choose McCarthy Law PLC Over Bankruptcy?

Choosing McCarthy Law PLC means opting for a team dedicated to your debt relief with the privacy and respect you deserve. We take pride in our ability to tailor our services to each client’s unique circumstances, offering the expertise and support needed to navigate complex financial challenges.


Qualifying for Chapter 7 Bankruptcy isn’t always possible, but there are other ways to reclaim your financial independence. With McCarthy Law PLC, you have access to a team that is committed to finding the best outcome for your debt situation. Contact us to explore how we can help you at 855-976-5777 or visit our website to schedule an appointment. Don’t let qualification barriers deter you from seeking help; take the first step towards a debt-free life today.

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